15. Jeff Bezos
CEO, Amazon
@gibsonbiddle
Customers are always beautifully, wonderfully
dissatisfied, even when they report being happy
and business is great. Even when they don’t yet
know it, customers want something better, and
your desire to delight customers will drive
you to invent on their behalf.”
29. NEW on DVD
Consumer insight
Surveys, focus groups
& CS data
The result
@gibsonbiddle
Perfect NR test
The A/B test
Perfect New Release
Delivery
Cancels: from 4.50% to 4.45%
“Save” 5,000 customers
“Worth” $1M= 5,000 x $100 x 2
But, additional inventory = $5M.
34. Hard to copy
Brand
Unique technology
Network effect
Economies of scale
/ Examples
“Movie enjoyment made easy”
Personalization
Device ecosystem
Original content
@gibsonbiddle
38. Product strategy / Tactics
@gibsonbiddle
Personalization
Instant
Easy
Device ecosystem
Margin-enhancing
Ratings Wizard, new algorithms
From 20 to 100 hubs; streaming
Day One experience
API launch; Xbox, Playstation
Price & plan testing
39. Product strategy / Metrics
@gibsonbiddle
Personalization
Instant
Easy
Device ecosystem
Margin-enhancing
% members: 50 + ratings at M2
% members watch > 15 min./mo.
% with > 3 titles in queue, day 1
% of demand weighted TVs
Lifetime value, gross margin
43. Product strategy
Explicit data
Implicit data
Matching algorithms
High-quality movies
/ Metric
P2 > 50 ratings
% members add > 6 dvds/mo.
RMSE
Average rating
@gibsonbiddle
44. Product strategy
Explicit data
Implicit data
Matching algorithms
High-quality movies
/ Tactic
Ratings Wizard
Queue-add data
Collaborative filtering
Acquire better movies
@gibsonbiddle
67. (All data are guesstimates)
@gibsonbiddle
2%
90%
$10M
85%
Consumer insight
“Cancel anytime”
Customer service:
Trials/visits conversion:
Month one retention:
A/B test results
Month one retention:
DHM?
High stakes or low stakes?
Who makes the decision?
Free trial reminder
75. @gibsonbiddle
Existing data
Data focus
Customer & Bus.
Qualitative
1-1, usability,
focus groups
Survey data
Demo, cancel,
quality, NPS
A/B testing
Measure change
Delight v. margin
Strategy
Hypotheses
DHM model
Are You
Obsessed?
76. Customer
Obsession
Putting the customer at the
center of everything you
do, to delight customers in
hard-to-copy,
margin-enhancing ways, to
invent the future.”